Company Classification and Technological Change: A New Perspective on Regional Innovation

Most studies of the relationship between technological change and regional economic development rest upon the conceptualisation and definition of three fundamental identities: the region, innovation activities, and the firm or establishment that undertakes these activities. The emphasis has tended to be placed on the first two concepts: defining appropriate areal units and operationalising measures of innovation. The manufacturing company or establishmenton the other hand, is usually treated as a non-problematic concept. In this chapter, attention focuses on the nature of the individual manufacturing establishments that make up regional systems of economic activity. This perspective implies a micro-level approach, and the chapter argues that from an understanding of the conditions that promote innovation at the micro (or establishment) level will emerge a more informed and perceptive analysis of innovation activity at the regional level.